UNION BUDGET 2010-11

RAILWAY BUDGET 2010-11

UNION BUDGET 2009-10

RAILWAY BUDGET 2009-10

UNION BUDGET 2008-09

RAILWAY BUDGET 2008-09

Calcutta Chamber of Commerce welcomes overall budget proposals 2010-11.Although the Finance Minister has acknowledged the weaknesses in Government Delivery System, he has not mentioned any corrective measures.The Chamber hails the positive side of the budget proposals such as more budgetary allocation on improving Investment Environment, Export Incentives, Agriculture Growth, Infrastructure including Power, Coal, Rural Infrastructure, Health, Financial Services, Urban Development with housing, MSME, Unorganised sector workers etc. Mention of national security & timely delivery of justice are also praise-worthy.

On Direct Tax front, upward revision of 10% personal tax slab rate up to Rs. 5 lakh and 20% up to Rs.8 lakh will help tax payers to fight inflation & will be an incentive to savings. The corporate sector has received blow in the form of raised MAT from 15% to 18% which will offset the reduction in surcharge from 10% to 7.5%.

Concessions in customs duty to few specific sectors will help the economic growth of the country. Retention of Service Tax rate at the present level of 10% is laudable.

Petroleum price will be severely affected because of restoration of 5% basic duty and advalorem duty of Re. 1/- per litre. It will ultimately fuel the inflation.

SUSHIL KR. AGRAWAL
PRESIDENT

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Unveiling a mix of populist measures, including concessional tickets and no hike in ticket prices and freight charges, the Rail Budget 2010-2011 clearly reflects the government’s focus on ‘inclusive growth’. This year rail budget has emphasized on commitments like “social responsibility” and expansion of Railways.

Her proposals include introduction of 117 new train projects & 52 long distance express trains, 4 new Durontos trains, extension of 21 trains and hike in frequency of 12 trains and special trains to mark Rabindranath Tagore’s 150th birth anniversary, for ladies, for uniformed persons and for tourists. This will benefit the passengers at large. Railway Minister’s grand expansion and modernization plans could turn out to be a big bonanza for India Inc. From upgrading the stations to expanding rail network, all are opportunities that the industry has been waiting.

Among her other offerings, the railway minister announced introduction of SMS updates of reservation status and movements of wagons to freight customers, Double-decker train-sets matching the best in global standards in two trains each from Delhi and Kolkata as a pilot project, modern trolleys at all important stations to assist senior citizens and women passengers for carrying their luggage and extension of Mobile vans for issuing e-tickets. The Chamber welcomes these steps.

Indian Railways is betting big on public-private partnerships (PPPs) to get a slew of new projects off the ground and kick off new initiatives to enhance freight revenues. These include PPP mode for providing rail connectivity to important ports. Additional 2,000 kms. routes to be electrified within two years. Work on adding another 12,000 kms. in existing Optical Fibre Cable network of the Railways is in progress. The balance 15,000 kms. is proposed to be taken through PPP mode, thus covering entire railway network. The initiatives are laudable.

We appreciate that substantial outlays have been earmarked for improvement of safety measures and infrastructure in Indian Railways – improve technology to reduce incidents of accidents, Anti-collision devices and fire fighting devices to be put up, all unmanned crossings to be manned. While the proposal for improving facilities/amenities would made travel more comfortable, it is gratifying that the Minister has categorically announced that Rabindra Museum in Howrah, Track training centre in Belighata, New loco training centre in Kharagpur to be set up in West Bengal.

The Chamber feels that the Railway Budget 2010-11 is unique in the way inclusivity and overall development have been the focus without losing focus on safety, technology adoption and commercialisation. The chamber wishes that the steps declared will be followed by their sincere implementation.

SUSHIL KR. AGRAWAL
PRESIDENT

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Calcutta Chamber of Commerce feels that the budget 2009-10 presented by the Finance Minister, while aiming at ensuring 9% growth rate during the current financial year, has given special thrust to socio-economic sectors (agriculture, health, education, rural as well as women empowerment), infrastructure projects, introduction of GST at national level by 2010 and last but not the least introduction of national E-Governance plan. If properly implemented, this will give a boost to the growth trajectory and help infrastructure development and stimulate demand. The macro economic policy pronounced in the budget also appears encouraging. This is a positive budget with long term perspective.

The Chamber welcomes the announcements on tax fronts like i) abolition of Fringe Benefit Tax and ii) removal of Commodity Transaction Tax. The Budget has also given marginal relief to individual tax payers by increasing relieves and exempting surcharge on income tax. However, the budget has belied expectation of Corporates by not reducing tax rates. The increase in MAT rate will also hard hit the sector. Industry has expected that the Finance Minister will take some bold steps for capacity creation and promoting investment, which is missing in the budget.

The extension of service tax on legal professions other than individuals will bring revolutionary effect. The presumptive tax proposed for small business tax payers is encouraging towards simplification step.

In short, the budget has delivered on impetus for growth and well being of the common man.

SUSHIL KR. AGRAWAL
PRESIDENT

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The Third Railway Budget presented by the Hon’ble Railway Minister Smt. Mamata Banerjee is largely on expected lines and can be termed as ‘pragmatic, progressive and futurist’. The budget has left both passenger and freight rates untouched.

The Railway Budget reflects a healthy growth with a freight target of 882 mt and estimated freight earnings of Rs.5300 crore.

With the introduction of 12 new point to point non-stop super fast trains, 57 new train services, extension of 27 trains and increase in frequency of 13 trains, the railway would pose tough competition for road and air traffic. With these move the air, fuel and noise pollution on roads would subside a great deal. The move is undoubtedly commendable. If experience is any guide, many of these schemes will languish for want of adequate infrastructure. Hence equal thrust should be given to strengthen infrastructure.

A host of other initiatives have been announced viz. extension of ladies special to 3 metro cities, Ijjat or low income monthly travel, special recruitment drive for physically challenged persons, introduction of double decker facilities in long distance trains, buying of tickets from post offices, automatic ticket vending machines etc. This will benefit the passengers at large. Commercial use of railways land will give a boost to railways revenues.

The Railway Minister has introduced several new procedures which will hopefully facilitate private sector participation in the railways, particularly in the design and development of stations throughout the country. The Chamber welcomes this step.

We appreciate that substantial outlays have been earmarked for improvement of safety measures and infrastructure in Indian Railways. While the proposal for improving facilities/amenities would made travel more comfortable, it is gratifying that the Minister has categorically announced that a new coach factory would be set up in Kanchrapara in West Bengal along with extension of Metro Rails in Kolkata.

Finally, Vision 2020 statement for improving countries railways network is a radical step to making Indian Railways as one of the best world class institution. The Chamber feels that the Railway Budget 2009-10 can be termed as pro-people and wishes that the steps declared will be followed by their sincere implementation.

SUSHIL KR. AGRAWAL
PRESIDENT

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Calcutta Chamber of Commerce hails the BUDGET : 2008-09 presented by the Finance Minister and welcomes the budgetary allocation in production, education, health, several employment schemes and flagship programs.

These measures will lead to overall growth and increase in demand, which will ultimately boost industry, service sector and traders.

India being an agriculture-based country and large number of population are within the category of marginal and small farmers, budget allocation for debt waiver and debt relief scheme and one time settlement scheme will benefit our deprived agriculturists.

We welcome the increase of income tax exemption limit. Our expectation for reduction of surcharge on Corporate has been belied. The increase of threshold limit in exemption of service tax is also a welcome step.

In view of worldwide recession and India facing the impact of recession in near future, there was a need to reduce interest rate. There is no indication to this effect in the Hon’ble Finance Minister’s Budget speech which is very much required for economic growth.

Hon’ble Finance Minister’s proposal for enhancement of short-term capital gain tax from 10%-15% is totally uncalled for and reason cited is unrelated. In order to support the capital market and the small investors, there is a need to roll back this proposal and retain the status quo.

H. V. PATODIA
PRESIDENT

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The 5th Railway Budget presented by the Railway Minister is largely on expected lines and has stuck to the populist track. There is an across the board reduction in both passenger and freight rates.

The Minister has announced reduction in 2nd class fares- both on passenger and mail and express train by 5%. The fare has been reduced by 4% for AC - I and AC-II tier coaches. This will be a great relief for all categories of passengers. The objective is to remain competitive vis-à-vis road and air transport.

True to the tradition set by him and his predecessors earlier over the past decade or so, the Minister has announced 10 Garib Rath trains to provide better comfort at lower rates. He has also proposed to introduce 3 new trains and extension of 16 trains besides increase in frequency of 11 trains. This is undoubtedly most commendable step taken by the Minister.

A host of other initiatives in the form of incentives have been announced viz. Tickets through mobile phone, extension of e-ticketing, LHV designed coaches in all Rajdhani train by March 2010, B&D category stations with high level platforms, extension of platforms in 30 stations, monthly season ticket for girl student up to graduation, for boys students up to 12 standard, concession for senior lady citizens, Ashok Chakra Awardees and for AIDS affected persons. so on and so forth. This will benefit the lower crust of the society.

The Budget has announced the biggest ever annual plan for the railways. The thrust areas include enhancement of high density network routes, improvement and expansion of traffic facility, construction of flyovers etc. Towards rationalisation of freight structure, the Minister has announced that henceforth freight rates for petrol and diesel would be further reduced by about 5% and for fly ash by 14%. This is the most praise-worthy step taken in the budget.

In short the Chamber feels that the Railway Budget : 2008-09 can be termed as people oriented budget provided the steps declared will be followed by their sincere implementation.

H. V. PATODIA
PRESIDENT

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